Why does your zip code impact your auto insurance rate? Getting a clear understanding of its effect will help you make better decisions when buying a new home: You'll appreciate that saving a few hundred on a home might actually cost you thousands in auto insurance premium over the course of a few years.

Here are a few of the reasons.

Where you live will largely determine your mileage in a number of ways. If you live far from the places you frequent you will accumulate a higher mileage. Take your job for example: If your home is 10 miles from your job and you drive there five days a week, you'll accumulate twice as much mileage as your neighbor whose office is just 5 miles away.

Will there be access to standard public transit where you are moving to? If you can use public transit it will definitely help you lower your auto insurance premium.

If your place of residence has a high crime rate, this will be a major factor in determining your auto insurance rates. The reason for this is your area's crime rate will affect your risk of vandalism and theft.

If you are deciding to move to new home in a different area, take some time out to do these calculate. The little bit of money you save on your new home might be totally negated by the rate increase you incurred on auto insurance premium.

Furthermore, take some time to do thorough comparison shopping to locate insurers who offer better rates to your zip code. Different insurance company's rates will vary widely.

Remember when you're considering a new place to live; get multiple auto insurance quotes to compare car insurance for the different zip codes you are interested in. If a zip code adds $400 to your yearly auto insurance costs, you'll pay an extra $8,000 over the course of 20 years!